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Citi cuts DLF, sees upside in Indian property

'Neutral' rating for DLF, against 'buy' earlier, top picks in realty include Phoenix Mills, Prestige estates

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Reuters Tokyo
Last Updated : Jan 24 2013 | 1:49 AM IST

Citi downgrades DLF to "neutral" from "buy", cuts target price to Rs 218 from Rs 266. DLF shares last down 1.3 percent to Rs 186.20.

Citi says DLF's share out-performance versus rivals over past year unjustified given non-core asset sales over next 5-6 months "will likely only help at the margin" and not cut debt "materially" due to continued estimated capex of around 3-4 billion rupees per quarter.

Citi adds wait for a pick-up in execution, sales and margins to become more constructive about India's biggest property stock.

For broader property sector, investment bank says most challenges priced in, sees "bright spots": such as resilient prices in cities such as Mumbai, but says "stay selective."

Top picks in sector are Phoenix Mills and Prestige Estates

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First Published: Jun 20 2012 | 12:33 PM IST

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